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A Look Ahead: Next Week's ETFs to Watch

A decent September jobs report not withstanding, stocks finished the week on a down note after Fitch Ratings took the ax to its debt ratings on Italy and Spain. No surprise there, but Moody's Investors Service made matters worse by placing Belgium's Aa1 local and foreign currency government bond ratings placed on review for possible downgrade.

That's not the way to head into next week, but it's nothing if not familiar. In other words, Europe remains a significant challenge. Yes, the week that was was pretty good, but it appears those that got too excited too fast about the bounce may have to deal with more declines. With that, here are next week's ETFs to watch.

ProShares UltraShort Europe (NYSE: EPV):
We could just one by one and say the iShares MSCI Italy Index Fund (NYSE: EPI), the iShares Spain Index Fund (NYSE: EWP), the iShares Belgium Investable Market Index Fund (NYSE: EWK) and the Vanguard MSCI Europe ETF (NYSE: VGK) are all worth watching next week. Or we could kill four birds with one stone and tell you to watch EPV.

Direxion Daily Developed Markets Bear 3X Shares (NYSE: DPK):
Not to be too brief, but see above. Buy DPK on a break above resistance at $45.

Global X Aluminum ETF (NYSE: ALUM):
Dow component Alcoa (NYSE: AA) steps into the earnings confessional Tuesday after the bell. Alcoa's reports rarely move the Dow, but it could put ALUM into play. This ETF is in trouble if support at $8.50 breaks.

Financial Select Sector SPDR (NYSE: XLF):
JPMorgan Chase (NYSE: JPM) reports earnings on Thursday and that starts the avalanche of bank earnings over the next couple of weeks. Not that we expect any earth-shattering positive surprises here. Maybe the ProShares UltraShort Financial (NYSE: SKF) is the better bet.

Consumer Staples Select Sector SPDR (NYSE: XLP):
Staples are still kind of sort of defensive and PepsiCo (NYSE: PEP), the world's second-largest soft-drink maker, reports earnings before the bell on Wednesday. XLP would be more attractive with a breakout above $30.50.